tv Bloomberg Markets European Open Bloomberg February 12, 2020 2:00am-4:00am EST
>> good morning. welcome to "bloomberg markets: european open." we are live from our european headquarters in the city of london. today, the markets say expect support. futures and stocks gain as investors weigh policy intervention over the spreading coronavirus. a big day for earnings releases. the cash trade is just under an hour away. ♪ anna: spillover. fed chair jerome powell wars the
coronavirus outbreak poses a risk to the global economy. president xi vows china will meet its economic goals, despite the threat. softbank returns to profitability in its third quarter. it also pledges better governance standards as the vision fund marks a 2 billion-dollar loss. leaving on a high. the heineken ceo exits with good grace. justll speak to the cfo after 7:30 a.m. london time. let's have a look at where we are an hour away from the trading day. this is the picture for futures are now. european futures point to the upside. foots are's test futures on the ftse 100 up -- futures on the ftse 100 up. let's have a look at u.s. futures. we see a fairly buoyant picture.
ta of the trading day. we have a few things going on here. we have a focus on the coronavirus, but also questions being asked about what asian central banks can do about it, how much firepower they have -- or not questions being asked, assumptions being made, perhaps. let's have a look at where we are through the trading day over in asia. things looking mixed to positive, i suppose. this is the positive picture you see at the top of the gmm. singapore market up by 1.3%, hong kong market up, hang seng up. coronavirus still very much a topic on what central banks can do about that. also focusing in on what the fed had to say about coronavirus. let's get to the breaking news. we have got a redhead line across the bloomberg talking about nissan and carlos ghosn. nissan suing carlos ghosn in japan for ¥10 billion in damages. we have been following the very high-profile flight of this auto industry executive from japan,
from imprisonment in japan, where he was awaiting trial, of course. he did not think he was going to get a fair trial so he crafted an incredible escape story to the middle east. as he builds his case there, as he passes his time, spent his time in the middle east, we watch what is unfolding in the japanese political and legal establishment. we see nissan suing carlos ghosn in japan for ¥10 billion in damages. interesting to see what kind of response we get from carlos ghosn on that front. let's get back to the market story now and get to market cranfield. -- mark cranfield. good to speak to you. for some time, it did seem as if the western, more developed markets had managed to draw a line in the sand already between what was going on in the coronavirus fight and the sad death toll and what goes on in markets.
it seems asian equity markets are also managing to do that and asian risk assets adjoining that pat upward. what do you make of the most recent price action? >> investors in asia are hoping that the central banks have got plenty more ammunition to get rates down, increased stimulus. that will have the desired effect of getting economies back on their feet very quickly once the coronavirus is contained. we have already seen rate cuts this year from malaysia, thailand, philippines, china of course. singapore is hinting that they could lose some -- use some policy. they have all got room to continue using. there are -- easing. there are other central banks in asia that have room as well. it is not necessarily a coordinated move. we are seeing central banks. taking action. . fiscal stimulus as well. malaysia has made it clear that is some coming -- there is some
coming. china is pumping in loads of stimulus as well. everybody is doing something to try and make sure the economic impact is short and sharp and that we can have a quick rebound. everybody is hoping we get something like the sharp rebound rs situation in 2003. hope for a is reshaped rebound rather than a u or l-shaped mark. if you are not convinced by what the central banks can do and the containment activities taking place in china, what are the best safe havens you can put your money into? we have been asking this question on the markets like blog. fx markets might be less clear. traditionalf the havens have not been quite as
exciting as they were. for example, during the global financial crisis. the yen does not seem to have the same power as it did during that crisis, when it was definitely the strongest currency, apart from the u.s. dollar. even the swiss franc seems to be losing its edge. even gold is not as exciting may be as some people hoped it would be. interestingly, in this recent surge in the u.s. dollar, the dollar has had a very good start to the year. it has been going up pretty much since the first of january. cryptocurrencies have been keeping pace if not actually doing better than the performance of the u.s. dollar. this is a bit of a change. cryptocurrencies obviously have a very short life. when the u.s. dollar was strong, typically, crypto went in the opposite direction and declined. we have seen the basket of bloomberg cryptocurrencies perform extremely well this year , even as o the dollar has been rising. maybe, finally people are taking
crypto seriously. we do not know which one of these cryptocurrencies will be the final winner. et basis, they seem to be gaining traction as an alternative asset during this pretty scary time for markets. anna: interesting point. that voice tells me that matt miller joins us, detained at the start of the program, now back with us. jump in. matt: i was just on bloomberg radio and there is a lot of talk this morning, i am sure there will be a lot of talk to the end of the year on whether the u.k. whetherivalents, on u.k. financial, the financial hub in the city of london is allowed to continue working with the rest of europe. if it were truly in question, if this were not just a negotiating point right now, wouldn't we see a lot more safe haven assets getting huge bids?
and financial markets going a little bit haywire? mark: yes, i am sure you are right there. we are only into the second month of the year and we have already had several shocks to financial markets that we really were not expecting. there has been some real left field action already. something like a dispute with europe, between europe and the u.k. is something we should certainly consider, but not something that has come completely out of the blue. what we are seeing, as we were discussing, there is major reactions from central banks, the big, powerful ones as well. in 2009, when china did its fiscal monetary stimulus, it had the chinese markets rebounding two months ahead of american markets. people have got pretty high expectations with china doing its very best that it can do a lot for financial markets.
that could outweigh anything going on in europe. yes, of course, the disputes between the u.k. and european union are very important, particularly on a granular level for people involved in financial transactions between those two centers. compared to some of the other things going on, it is not a high-profile case really, not yet. matt: thanks very much for joining us. mark cranfield there, are bloomberg mliv strategist out of singapore. you can join the debate on today's question of the day. what are now the best havens across asset? reach out to us. give us your contribution. up next, we are going to take a look at the stocks to watch this morning, including heineken, as the dutch brewer reported full-year organic beer volume that beat estimates. the company also elevated an insider to the position of ceo. we will talk more about heineken. there is a ton of earnings to
♪ anna: welcome back to "bloomberg daybreak: europe." 12 minutes past 7:00 in london. you can see that the european futures picture looks fairly buoyant for this time of the trading day. waiting to see if we get further moves to the upside in the european session. let's talk about the earnings story this morning. softbank posted a third-quarter loss for its vision find that topped $2 billion. this comes after a slew of positive news for the company after two of its troubled investments showed signs of paying off. uber said it would become
profitable at the end of 2020. yesterday, t-mobile and sprint received approval for their merger. thatd that -- to revelation the elliott uilt ament has b sizable -- in stock make. -- softbank. what are the takeaways from the earnings? the vision fund loss clearly of interest. >> certainly. there was a very large loss and just another sign that things are bleak at the vision fund. the outlook there has not been good. that continues. the valuation of those companies , the portfolio companies that softbank has invested in, does not look good at this stage at all. it almost completely wiped out theirquarterly profit -- quarterly profit. this was a surprise result and not a good situation for the
company. matt: on the other hand, the t-mobile-sprint approval is a good situation for the company, right? how important is this deal for softbank? >> that was the good news. the shares were up 12% today on that news. that takes about $40 billion of debt off of their balance sheet. that is a very key point for this company. softbank operates on very high leverage. if they can take that amount off of their balance sheet, that gives them a bit of breathing room which they really need. in order to this -- move this company forward, they have to continually borrow and invest more. that has been the plan. ofis necessary to have a bit shoring up of the balance sheet, even as he is facing pressure from the likes of paul singer, who you mentioned, is taking a $3 billion stake in the company
as pressure builds for that. he really needed some good news, which was the approval of the sprint deal. that has been an albatross fornd the company's neck years now. now, it is finally done. that gives the company breathing room to move forward and keep the focus more on their portfolio companies. anna: to what extent are investors revaluing softbank? we talked about the activist investor interest and this is a business being reshaped. what is happening in terms of the investor community? >> right. well, certainly with pausing there, the focus is going to be -- paul singer, the focus is going to be on the company's asset allocation. a year ago, softbank was announcing a massive buyback on the order of $6 billion. a huge buyback. you have to know that the pressure is building for that. they have raised their dividend
but the payout for this company, there will be immense pressure for that payout to come. that is the idea behind creating this holding company. now that they have the sprint deal out of the way, that allows them to focus on this idea that they are going to pick winners and the valuation of those will go up, they will be able to take those companies public and get payouts for their investors. that is what the focus will be, just how much cash they can generate from the portfolio companies, and then how much of it they are willing to return to investors. matt: thanks so much for joining us. conglomeratesia editor in tokyo talking to us about softbank. let's get the bloomberg first word news with leigh-ann gerrans in london. >> the coronavirus has claimed 1,100 lives. more than 40,000 people have been infected. the outbreak may be easing. the number of new cases in a
province was the lowest so far this month and the disease has now been officially named co vi-19. the coronavirus threatens growth in the u.s. and globally, according to jerome powell and comments at the house financial services committee. he also said that central banks will never declare victory on full employment but some progress has now been made. in india, prime minister narendra modi's ruling party has been defeated in a key state election for control of india's capital. that is after his religion based citizenship law started protests across the country. his party ran an aggressive campaign to win the capital, but it has not formed a government there for over two decades. samsung is betting on a bigger camera upgrade for its new galaxy phone. the new family of devices will
have 4 cameras, including a 100 times zoom. it will come with 16 gigabytes of memory and a huge battery. the starting price is nearly $1400. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna, matt? matt: thanks very much. leigh-ann gerrans with your first word news. let's get your stocks to watch from around the newsroom. dani burger is looking at eqt. philippe a pacheco -- felipe pacheco is covering heineken. let's start with you. what have you got on the dutch brewer? >> that's correct. this could be a quite positive session for heineken today after they deliver numbers that were actually much better than analysts were expecting.
if we look at sales, for example, they rose 5.6% versus on estimate of 5.1%. heineken said that sales in brazil for the heineken brand were actually -- the country is now the largest market for heineken, which proves that it was quite a smart decision to buy business in that market. they also said it is too early to assess the impact of coronavirus in the beer industry. if we look at asia-pacific, and specifically, sales their increased by 12%. that helps explain why the company actually decided to name business in that region as the new ceo starting in june. anna: thanks very much. let's get to dani burger on eqt. >> the private equity giant had earnings today for their full
year. their dividend coming in weaker than had previously been expected. their basic eps also missing a little bit but we are unlikely to see huge losses, because strategists for the stock are really concentrated on what eqt confirmed today, that they are looking at strategic options for their credit arm. private quite it -- credit has been blooming in europe. it says it wants to concentrate on its core offerings. that might help assuage some concerns. we do not have many more details of the sale besides the basics. we do have an earnings call with the company at 7:30. that is one thing strategists will be looking out for, any details of that credit arm sale. matt: thanks very much. you can get all the latest stock stories from the equities team by typing first go on your bloomberg terminal. you can also get the first word news on your mobile device -- mobile app. we will speak to the cfo of
heineken after 7:30 a.m. luke u.k. time and with a slew belther executives, votto -- vontobel. bernie sanders wins the new hampshire democratic primary in terms of the number of votes, if not in terms of the number of delegates. we will have the latest on the results of what it means for the future of the race next. this is bloomberg. ♪
♪ do you think the broader knock on impact can be quite severe as well? china's economy will be impacted. supply chains are already being disrupted so this will have an impact on the overall global economy and singapore will surely be impacted in that scenario. so we are preparing for a strong package in the coming budget. matt: as -- that wasn't singapore's national development minister, lawrence wong. onto u.s. politics. bernie sanders has been declared the winner in the new hampshire democratic primary, leading the pack with over 85% of the precincts reporting. he beat back a strong challenge from pete buttigieg, who came in second place.
the surprise of the night was amy klobuchar, who came in third support. surge of we are joined now for more on very late in the new york borough. clearly, this is the kind of thing that a reporter appreciates staying up late for. tell us how the candidates are reacting. >> absolutely. you have multiple candidates declaring victory after this new hampshire primary. obviously, it was bernie sanders that ultimately won. he is trying to position himself now as the front runner in this democratic race but pete buttigieg declaring victory and the fact that he was so close behind sanders. amy klobuchar writing this wave of momentum -- riding this wave of momentum after a strong showing in the democratic debate last week. of course, the disappointments came from senator elizabeth warren of massachusetts and former vice president joe biden.
they both tried to convey a message of strength, because they say the race is not over yet. we are still very early on. nejra: briefly, lots more to watch in the coming weeks. >> absolutely. most important i think is south carolina especially for the biting camping. about 60% -- biden campaign. about 60% of democratic voters in south carolina are black. that is on february 29. anna: thank you very much. the latest on the new hampshire primaries and the race ahead in the democratic contest. next, we will get back to the markets and the wealth management conversation. we will speak to the ceo of staub, as the company relied on its lower level asset management business to attract clients. let's ask him. we will ask him what his expectations are for the wealth
matt: welcome back. 30 minutes from the start of cash equities trading. right now we are looking at equity index futures that are up. elle about -- fontab struggled to win new money. francsacted 11.7 billion in new assets, which is roughly the same in dollar terms. eating its own target as well as analyst estimates. let's discuss the earning pictures so far. about the challenges
we had to digest the integration. it is now finished and done. and wrapped up. we remain confident that the -- we will return. nejra: are you able to recruit wealth management advisors as quickly as you want to? what is stopping that business from getting bigger more quickly? have deliberately stopped our hiring spree.
we have a well executed m&a strategy. we have become more selective. we are in a position of strength. our criteria has only sharpened. nejra: let me ask you about the strength you see. facing somee well-publicized scandals that have been the talk of zurich over recent months. is that something your business is able to benefit from? are you seeing clients come to you because they do not want the distraction elsewhere?
we declined to comment on competitors. we build our strategy on strengths, not the weaknesses of butcompetitors would matt: you do want to offer safe and secure asset management. volatilitye times of in other places around switzerland. you must take advantage of that moment to pounce on those clients. >> of course. the skills and the edge of our products and services. withe routed and anchored a majority shareholder that
brings a long-term vision to the table. we have stability. we think that combination is of interest to quat -- clients. nejra: thank you very much. let's talk about another earnings story today. operating income for the fourth quarter that the estimates. let's get some clarity. good to speak to you once again. what message are you trying to ?ommunicate >> we feel very much on track.
if the end users are not there, obviously you cannot sell your material. i have seen the pictures this morning. we get daily updates on how are is following great rigor and discipline. it is impressive to see. we do not think it will have a material impact. nejra: when you look at your , are there parts of the chinese economy that worry you? a sector that will be an issue? >> definitely. the home improvements. that will be a shift. if you want to paint your house
or living room, you will do it. but that will not happen in the first quarter. be amer electronics might little bit slower. not sure that will pick up for the big mass producers. it is a big disruption in the first quarter. matt: in terms of your business and they reported quarter, you had higher operating profit then we were looking for on the street. tonow you put i -- plan complete a buyback in the first half. what are your plans looking beyond the first half in terms of returning cash to shareholders? >> the question. stion.d que
we are retooling systems. really making fantastic process i'm getting the company to unify. that is something that has to be in place. the cast generative quality of the business has made a jump this year. we are looking at getting our company and the best shape possible and delivering. we are not going to give any previews. it is already on the table. >> thank you very much.
up next, we will stick with the earnings news. the stories impacted by the coronavirus. we will look at heineken. a change at the top. we will be speaking about the story and get the latest on the company's earnings. we will speak to the cfo. remember rick, bloomberg radio is live on your device. this is bloomberg. ♪
again. a sign of continuing struggle. the japanese conglomerate returned to profit in the third quarter. lyft has disappointed investors. the results coming after uber reported stronger numbers. it said it would be profitable by the fourth quarter of 2021. boeing has failed to sale -- sell any commercial planes in january. -- orders since the grounding of its max chat.
boeing shipped only 13 planes in january. that is your bloomberg business flash. here is what you should be watching out for today. googles antitrust fight goes before a european court. we are expecting eurozone production numbers. month.r was a tough outputontractions and across major european economies. day two for the federal reserve chairman jerome powell to deliver his semiannual report on the state of the u.s. economy to congress. watch out for that as well.
there were a lot of earnings this morning. heineken has named a new ceo. after almost 15 years of ceo will beits new an insider who is currently president of the asia pac opportunities. posted theker fastest sales growth and a decade. joining us now is the cfo. tell us what you expect. is this a steady hand running the ship in the same direction? or a young newcomer who shake things up? >> good morning. it has been an amazing five years for me as a co-member of
coronavirus?om the people are quarantined, sick. they will not be going out and drinking beer. what kind of losses do you see to your business? it is obviously an extremely serious situation. partnership with crv, the market leader. and the rest of asia, you have some consequences that are yet to be seen. to assess.oo early
taking that very serious. law isact of the infected by the coronavirus. the law will adjust to how people behave. matt: thanks very much for your time. the cfo at heineken talking to us about the earnings and her expectations. up, futures are pointing slightly higher right now. just four minutes before the live cash trade. this is bloomberg.
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>> here are your headlines. jerome powell warrants the coronavirus outbreak poses a risk to the global economy. thousand chinai will meet its economic goals despite the threat. the heineken ceo exits as the brand posted's passes growth in decades. matt: we do have some slight gains. they are not huge. perhaps we will see some of a
risk this morning as earnings come in slightly ahead of expectations. anna: let's have a look at these markets. futures were adjusting -- suggesting we would see a little bit of a bounce. coming up, the all-time highs. they will be able to do things to shore up the growth story. we are talking about the extent to which production facilities can be brought back on stream. mind,ll of that on -- in
equities in full swing. we see some modest gains. a little bit of risk on. we have a lot of earnings reports out today which could guide things. from companies that did well in q4. they have a lot to tell us about the impact of coronavirus in this quarter. and they just are not saying a thing. take a look at some of these movers. heineken up 2.8%.
european markets lacking in a direction at the open. we are at record levels in terms of risk asset prices. do you think that is justified by the current economic situation? >> i think it is too early to tell. this is not particularly high. if the cases looked like they are going more global, that can have an impact. it is too early to tell at this point.
we are not making too many changes to the portfolio on the back of it. anna: we are asking executives about the impact of the coronavirus. not telling us what they're expecting to do. burberry told us the impact it is having on sales. and what was open. and what impact they were seeing. details?etting enough >> not at the moment. it is very hard to tell. we have a number of tech companies within the fund. the supply chain has become so compact. they are not seeing shortages right now. but they are worried they will start to see shortages.
have met are i trying to be transparent. anna: they have their own stockpiles. >> exactly. hard to see where industry is that on the whole. matt: it seems like just one central banks may have wanted to normalize policy, they are going to have to be a little bit more accommodating to deal with the second derivative issue. do you think we are going to see that? >> the message i am hearing is that this came from christine lagarde. they feel central banks have already done a lot. interest rates are already very low. is a limit to how much monetary policy can accomplish.
current head of asian-pacific. arlos ghosn.uing c the fines may increase. charged with financial misconduct in 2018. he was to face trial before his ago.tic escape six weeks that is your bloomberg business flash. matt: thank you very much. bp'a new ceo delivers his vision for the company. us in ane speaking to exclusive interview at 5:30 p.m. u.k. time. , the access of london financial service terms to the eu is a big battleground.
at now, it will be the highest close since may of 2008. if it closes at this level, it will be the highest level in years. this was expected to be a key battleground. this would give u.k. firms continued access to the single markets. tell us more about this inevitable spat. how is it playing out in the
very early stages of negotiation? this is obviously a huge issue for financial services. it is no surprise. we knew this would be a key battleground. yesterday was a warning shot to the u.k. government. the toughest language we have heard from the european union to date to the u.k. de you end u.k. may have different rules. the fact that the eu will fight the regulations and rules that were put in place. it is really not up for discussion. from this side of the channel, the argument i here in brussels, the eu feels like the financial
aspect and the fact that they are the only ones who can grant equivalence to other countries gives them a lot of leverage. a lot of these firms in financial services want to see the u.k. keep access to the single market. if not, that could become problematic. ,nna: there are many voices some who care about this more than others. what about the weight the bank of england is weighing in here? you have a couple of voices speaking about this in the last 24 hours. >> exactly. a number of voices coming out of the bank of england. you don't actually take part in the rules are
negotiated. a lot of people will tell you it makes sense. but these are the political repercussions of brexit. these were always going to be the repercussions after the u.k. leaving the european union. this is a one-sided negotiation. if the eu decides it wants to grant equivalence to a country ort is not a member state remove that equivalence in a matter of weeks. can just remove it. that is a huge uncertainty. it is difficult to make that a sustainable relationship if it is not really open-ended. at this point, the eu does not want to go that way. anna: thank you very much. we will keep across any comments
made about the eu budget. brexit leaving a bit of a hole in it. we have been talking about financial services and the ongoing brexit conversation. you do see opportunity in u.k. domestic businesses. where are you looking? that are u.k. funds small, medium, and large companies. i am quite happy with that at the moment. take -- like the you u.k. economy is gently improving. consumer confidence is ticking up. domestic banks are a good example.
they will announce a big strategy change. we see interest in house builders. house price data is encouraging. anna: more generally in the construction space. i was hearing about a golden age of u.k. infrastructure. in?hat all price and -- >> i don't think so. reluctance tol own contractors. i think it will take quite a while for confidence to return to that sector.
matt: will portfolio managers be scared away from financials? >> i think it really depends on the financial we are talking about. it is not an issue for those type of companies that are domestically focused anyways. for other financials, it would be much more relevant. i have learned not to pay too much attention to this back-and-forth. last year i spent my whole year trying to work out what the brexit negotiations would be. it was not conducive time. the focus should be on where the value is. matt: if only we could ignore it.
unfortunately, i do not see that happening. what do you want to focus on? what do you get up excited about? what is your best idea? something you pitch to your friends? about smaller u.k. companies. i feel they have been very left behind. smaller companies did not keep up with pace. the evaluations are quite a big discount. that is the area i am quite excited about. anna: thank you very much. , we get you the stocks on the move. the heineken ceo exits on a high note. earnings beat estimates. this is bloomberg. ♪
matt: that was singapore's national development minister. he is also the cochair of the city's virus task force. it evacuated its office in singapore to try to contain any possible spread of the virus. let's get back to our top stories right now. the market stories. losers isthe biggest abn amro. dividends -- miss on their dividends. are a loty said there of uncertainties it is dealing with. compliance costs are stacking up. it is all about gucci.
it comprises 80% of the sales. it had a big fourth quarter. a big beat there. especially with all of the uncertainties last quarter, including slower u.s. sales and the protests in hong kong. still a lot of uncertainties that continue to weigh on the company. for now, the gucci story really helping the shares. the ceo of heineken has left on a high note. anna: thank you very much. i am not sure the numbers they're reflecting today's move. we will get back to you on that one. let's talk about a company in the news, bp. presenting to investors a little bit later on today. this is an industry and transition.
how much patients to investors have? how much are they on board with these transitions? findingifficulty i am is how they make these transitions while maintaining the returns they are generating. there are beginning to be? 's about dividends. i'm talking over the next 10 years. are the returns as good as you are making? ? he was talking about how
investors put pressure on them to be more environmentally friendly. they are all for that until they to the dividends. >> you have to be careful is someone making it sound simple. it is difficult as a shareholder at the moment knowing what to suggest to companies. i think we want them to strike a very careful balance. you are thinking this might not be today's moves. those were full-year moves. that is why they seemed so outsized. let's get back to the energy transition.
how key is it in your portfolio? >> it is becoming increasingly so. everyone is running and sri mandate. that is probably the most asked question. how are you integrating it into the process? being completely upfront about it, i think the danger is not there yet. especially for medium-size companies. while we look at the data, we have to be very careful. sometimes we can get results that are not common sense. anna: thank you very much. sandersp, bernie wednesday new hampshire democratic primary. -- results.most this is bloomberg.
♪ back.welcome 30 minutes into your trading day. this is the positive outlook for european markets. that is the picture. here are a few individual movers. these are the ones dani burger was taking you through. we were showing you the year moves. we want to show you the intraday moves. we need to get to some news out of sweden. matt: as expected, the riksbank kept its key interest rate unchanged. what i love about the first word headlines is that we have taken out for significant digits from zero.
0.000. that was as anticipated. we are getting forecasts for gdp growth. swedish growth that 1.3% this year, 1.8% next year. those are both a little bit higher than what had previously been forecast. it does say that the coronavirus is expected to cut global growth short-term. it says that will be short-term. that is probably one of the important headlines. we will continue to get these headlines. you can also check it out on the bloomberg terminal for a great snapshot of what is going on.
he is the chief economist et al. he owns. -- allianz. what do you think about the current state of central-bank accommodation? leaving aside the giant swedish central bank and focusing in on what we see at the fed, ecb, japan and china. will it need to get more accommodative because of the coronavirus? >> yes. this prolongs global recessions.
there has been almost $26 billion of trade losses per week. that is big for germany or taiwan. billion of trade losses per week. due to the virus and the lockdown. the reaction to the virus. we expect growth in china to be cut by one point. look at what happened in the iowa caucus. central banks will be asked once again to save the day. specially since policymakers are nowhere to be seen. this will create further pressure. anna: how does the ecb do that? have been plenty of voices they are pointing out the limits of what they can do.
and they negative side effects of what they do. you think more creative tools will come out of their review? so because ofnk the strategic review there is a series of topics that should be discussed. there is a lot to be done at the national level. now, the only thing they can do is give the right signal. i don't believe they have positive effects today. that in this space. i don't think it is for major innovation. matt: you don't think they have butt of positive efficacy
they have negative effects on financial stability. >> yes. from banks to companies. we ran the studies last week about what is the effect on the savings rate? answer is, it looks like people save more when rates are lower. they want to maintain income. they are looking strategies that are not toward risk appetite. there are real factors. we are 10 years after the big financial crisis. who has benefited? the german government. the french banks have been the biggest loser.
we see a redistribution of these winners and losers? in france we saw a small mutual fund stay afloat. we are looking at these effects and we think they are getting stronger. anna: i want to ask you about the country you are sitting in right now, germany and the structure of that economy. given the challenges of the coronavirus. you talked in your notes about how germany faces a stranded future. what does germany need to do to make sure it is not stranded? >> the first block of
policymaking. the question is not whether germany should spend more or less. the rates of return of investment are at stake. this is one of the reasons we see weight on the government. the question of the coalition stability. there is another policy world. germany is in dire need of sinful dictation -- simp lification. behind.is lagging starting a business in germany is difficult because of the
legal and tax bottlenecks. matt: too much pr kissing. you need simplification. on the car manufacturing level. great to have you here. you always bring us some fascinating thoughts. at a the chief economist llianz. let's get to one of the points he touched on. u.s. politics. bernie sanders has been declared the winner in the new hampshire primary.
reit -- leading the pack with ther per -- over 85% of precinct reporting. of the nightwinner was amy klobuchar, coming in third on a surge of late support. york isus from new kelly. where does this leave us? >> now we are looking at a democratic race that has been blown wide open. bernie sanders one. that was widely expected. handily won new hampshire back in 2016. what is more surprising is how tight this contest was between bernie sanders and pete buttigieg. klobuchar will get six delegates. buttigieg and bernie sanders will both get nine. but it is not really about the
your tradingto day. a positive session. the asset managers saw a record inflow. boosted by a new mandate in india. welcome to the program. i'm sure you are not preoccupied with short-term share prices. your stock has gone up by 55% in the last 12 months. it is being sold off today by just 2%. market is think the buying your stock? the market has appreciated a lot.
we registered strong increases in the market cap. 12%. there is some profit-taking from the market. anna: probably after such a big move higher. let me ask you about china. clearance to control a wealth management venture. what do you expect from that. theently -- especially with current headwind facing the u.s. -- chinese economy, coronavirus? we manage nearly 300 billion euros of assets in asia.
a joint, we are in venture with abc. what we are doing with the bank of china create a new dimension which will support the private bank. we will have a stake of 55%. we will have tremendous position in china. with this joint venture with two big banks. of course, there is the question of the coronavirus. i hope these difficulties will not last a long time. matt: what do you think about the effect of the negative rate environment we are in today?
we just had the chief economist talking about the german government being a huge beneficiary and french banks being hurt the most. there seem to be so many negative and unwanted side effects. how do you deal with it? back to this come reason of low interest rate. it has been the consequence of the crisis of 2008. and the crisis of the eurozone. it was done to make sustainable the level of debt.
we have the objective to be 100% esg by 2021. we have taken the objective to implementing some indexes that are taking into account. committed in this direction. to have yougreat spent some time with us this morning. thank you so much for coming in. the ceo of europe's largest asset manager. i want to keep you -- bring you some breaking lines.
matt: welcome back. we are almost an hour into the session write-down. looking at gains on equities index. moving back to all-time highs. let's take a look at what is moving markets. why are we risk on right now? richard: jerome powell last night sounded very positive about the u.s. economy. fedays the central bank stands ready to jump into the fray in case the coronavirus
endangers global growth. in the u.s. economy. is something that lifted sentiment. let me ask you about havens. we know you have been giving this some thought. we have seen a bit of this already. now is the expectation from ? have been asking which is the best haven. u.s. short and is both attractive and reliable. that is probably the best one out there. you have deep liquidity in any haven market. when people start to flock to it, they flock on that. you need that. the short end of the u.s. curve
provides that. bank that isntral communicating more effectively than any other in the world. the yield to get in the u.s. short and are very attractive. we will probably see the u.s. shortened perform. and all the havens out there, it is probably the most reliable. fed: at a time when the looks like it will become more accommodative. people are bidding up a bit going. just wanted to point that out. thank you very much. delivers an interview for us.
>> the fed chair jay powell warns that the coronavirus poses a risk to the economy, and president xi jinping says tenet will still meet its economic goals. we will report live from the u.s. on the new hampshire primary. and, a record loss on the meltdown at wework. ♪ francine: welcome to "bloomberg surveillance," i am francine lacqua in london. euro socks